WASHINGTON, DC -- The US Department of Commerce has unveiled an analytic risk assessment tool to inform the government’s efforts in mitigating supply chain risks.

Launched at the inaugural Supply Chain Summit hosted by the Department of Commerce and the Council on Foreign Relations earlier this month, the SCALE Tool marks a significant milestone in the government’s broader commitment to strengthening the domestic supply chain ecosystem.

The SCALE tool is designed to provide critical insights into vulnerabilities across the supply chain ecosystem, enabling the US government to be more proactive and strategic in addressing issues related to supply chain security. Utilizing data sets from various U.S. government agencies, the tool employs over 40 indicators across geopolitical, logistical, and technological categories to provide an in-depth evaluation of criticality, vulnerability, and resilience. Additionally, the tool assesses a wide range of factors affecting supply chains, including climate challenges and geopolitical tensions, creating a comprehensive "spider web of risk." By identifying and addressing these risks, the tool allows for a nuanced understanding of structural and systemic supply chain vulnerabilities down to the component level.

In practice, the SCALE tool will guide government decision-making and policy development, facilitate data-driven conversations with industry stakeholders, identify systemic and geopolitical risks, foster international partnerships, shape manufacturing and trade policies, and support investments critical for supply chain resilience. Although the tool will not be available to the private sector, the US government will engage with industry representatives to collaborate on its findings.

In its current version, the Department of Commerce has outlined four primary uses cases for the SCALE Tool:

• Generating unique insights to help the U.S. government’s current efforts to build supply chain resiliency
• Informing the US government’s priorities and agendas
• Pricing and quantifying risk and
• Understanding foreign adversary risk.

These use cases will help the United States maintain a competitive edge in global markets while assessing national security and economic implications.

The Commerce Department is already using the SCALE tool to identify critical vulnerabilities in key domestic industries. Specifically, SCALE has pinpointed supply chain risks in critical materials for AI data centers, identifying six materials with the most vulnerable supply chains, including backup generators, printed circuit boards, next-generation cooling technologies, cement, networking equipment, and semiconductors. In turn, the  government is taking proactive steps to collaborate with the private sector and share information, particularly with the Advisory Committee on Supply Chain Competitiveness.

Additionally, the tool has identified the chemical and emerging technology sectors as vitally important to the U.S. economy. As a result, the government will be conducting two tabletop exercises in 2025 with these industry stakeholders.

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